Alabama Sales Tax Requirements
Alabama requires registering for a sales tax permit to purchase items tax-free for resale unless dropshipping. Dropshippers use home-state exemption certificates. Remote resellers must collect and remit taxes to Alabama if the sale is taxable. Alabama does not accept out-of-state seller IDs.
To get an Alabama resale certificate, complete Form ST-EX-A1. A seller’s permit serves as a resale certificate. Firms must collect sales tax after obtaining a certificate. Selling goods requires a permit and maybe services.
Required Certificates for Tax-Free Purchases in Alabama
- Alabama sales tax permit
- Form ST: EX-A1
- MTC Uniform Sales & Use Tax Resale Certificate
State-Specific Resale Certificate Information
In South Carolina, a resale certificate allows buying goods tax-free for resale. It differs from a sales tax license allowing collecting sales tax from customers. Typically, retailers like auto parts stores use resale certificates to buy wholesale goods without sales tax.
The Department of Revenue provides South Carolina resale certificates. Certificates are kept on file by the seller, not filed with the state. A separate seller’s permit is required to collect sales tax from buyers.
Important Points for Resale Certificates
Sellers must collect and validate certificates before sales tax exemption. Certificates should be stored for future purchases or audits. If sellers fail and face audits, they bear responsibility for fines and penalties.
South Carolina retailers allow out-of-state buyer certificates. Ensure complete required information, including state sales tax registration number. Check certificate validity using the state link.
Certificate Validation Information
Certificates from non-reciprocating states are unacceptable. Ensure certificates have correct, current buyer information. Verify certificate legitimacy to avoid burden of proof for fines and penalties. Most states validate certificates.
Exemption Details
The Form ST-8 exemption applies to exempt capital improvements.
States Refusing Out-of-State Certificates
Ten states refusing out-of-state certificates: Alabama, California.